This research analyzed the economic performance of the Uruguayan beef export
chain using the policy analysis matrix (PAM) method. It quantified the effects of
public policies (taxes, subsidies and social security costs) and potential market failures affecting the different rings of the production chain. The potential transfers from and towards the chain were estimated. First, all revenues and costs were computed for each ring of the beef industry: primary production, transportation, and packing. In the second stage, private and social benefits were estimated, from the farm level up to the port. The results showed that global profits generated during 2010 by the beef export chain reached 985.5 US dollars per metric ton of processed beef. The private agents involved in this chain captured 30% of this value, leaving on the table 691 US dollars per metric ton, in terms of net transfers towards other sectors of the economy. At the whole chain level, the direct transfer of resources due to taxation explained 29.2% of the differences. The weight of the social security costs represented 30.3% while the inefficiencies in the cost of capital and the «country» cost helped to explain the remaining 40.5%.